Carphone Warehouse agrees fee for Tiscali’s UK broadband arm

11 May 2009

According to Reuters, Carphone Warehouse has reached an agreement with Italy’s Tiscali over the sale of the latter’s UK broadband operations. Carphone Warehouse has agreed to pay GBP236 million (USD355 million) for the unit, although the deal is conditional on Tiscali obtaining formal approval to restructure its debts, and the sale is expected to be completed by mid-June this year. Following the sale announcement Tiscali revealed that its board of directors had approved key terms of a plan to restructure more than EUR600 million (USD804 million) of debt; the debt restructure process is now expected to be finished by 5 June.

Once the deal is complete, Carphone Warehouse will leapfrog Virgin Media to become the second largest broadband operator by subscribers in the UK. According to TeleGeography’s GlobalComms database, at the end of December 2008 Carphone Warehouse held the third place in the broadband sector, with 2.73 million subscribers to its TalkTalk DSL services, while Virgin Media had 3.9 million. By adding the Tiscali subscriber base however, Carphone will gain an additional approximately 1.67 million customers.

United Kingdom, TalkTalk, Tiscali, Tiscali UK